We know that the more financially literate a woman is, the greater their ability to make choices, break through social barriers and have financial ascension. That’s why it is crucial to start teaching girls about finances even when still at school age. This guide outlines methods to teach financial literacy for teens and younger children.
If finance knowledge starts to be taught from an early age, women’s ability to make well-informed financial decisions and properly manage personal and family finances will be better.
Knowledge of finance has the potential to help us create sustainable finance habits, learn to save, have good investment results, obtain more credit and pay less interest, which allows us to finance a balanced and sustainable life in the future.
Without a minimal understanding of basic financial concepts, women are less prepared to make efficient decisions, which makes them financially vulnerable, being the group that most needs financial literacy education programs, and the group that would potentially benefit most.
The importance of financial knowledge increases with the financial complexity of the market. The frequent offer of a wide range of financial products that have been offered to the general population makes knowledge more necessary and investment choices even more critical. Today, people are having access to an ever-increasing number of financial products and services and must decide which of these products are right for them, which of them offer greater advantage and profitability in the short and long term and with less risk of loss of capital.
Financial literacy for teens and younger children
Teaching children about money is not an easy task at all, but today many options and applications make life much easier for parents and children. Every beginning is difficult, but children understand and learn best through play, and then can be progressed to financial literacy for teens.
Therefore, you have to come up with an interesting and creative way to make them more interested in learning about finance such as credit cards for kids. You should be aware that you are teaching them a commendable skill that will make their life and future much easier, and will prepare them for life in the best possible way.
We will highlight the best ways to teach financial literacy for teens and young girls so that they have the right and strong financial education.
How money is made
The basis of financial literacy for teens and younger children is to explain that money is earned by work or business. Money is the most important secondary thing in the world and learning to handle it properly is a kind of skill that takes time to develop. Children must know that money does not come from magic machines (ATMs) and that it does not grow on some magical trees.
The difference between needs and wants
One of the most important things you need to teach financial literacy for teens and children is the difference between needs and wants. Needs include basic expenses that parents must pay monthly, such as bills, mortgages, fuel, loans, groceries, clothes, and shoes, as well as all other expenses that arise during the month.
Only after the parents pay all the necessary obligations do they have little money left to pay and fulfill their children’s wishes. You have to teach them that sometimes it’s okay to fulfill their wish as long as it’s all within normal limits.
- You must be an example to them
Children will imitate you in everything, even in money. Therefore, it is very important that you don’t waste money in front of them, and that they also see that you save money, manage it properly, and that you don’t spend money on stupid things. First of all, you must be the best example for your children on how to manage money in the right way.
- Include them in the costs
Kids learn very well when they see an example of something, they will have a sense of money when you show them a grocery list for the next week or month. In this way, children will see that groceries are not cheap at all. If you give them an allowance, let them be included in part of the bill payments, that way they will appreciate the money more.
- Get them a kid’s credit card
One of the most comprehensive and fastest ways to learn financial literacy for teens and children is through this type of card. Children have almost the same opportunities as adults, they can make a savings plan, an investment plan in shares, earn money, spend, and donate money to the needy. In addition to having all these options regarding the financial aspect, children have the option of completing activity tables that are easily adaptable to each child’s age.
Children can earn extra money by completing activity charts within given time limits, such as household chores, and curricular and extracurricular activities. Also, if the children do not fulfill their obligations within the given period, you can punish them by reducing their pocket money for the following month. Thanks to the mobile app, children and parents have instant insight into the transactions and activities that the children perform on the account.
- Let them find a part-time job
Children are best taught financial stability and handling money by earning their own money. For many teenagers, the money their parents give them is not enough for all their needs and expenses, so they decide to look for additional work. Children, no matter what their age, can do minor jobs such as extra household chores, watering plants, taking care of pets, and selling lemonade.
While older children can babysit, walk and take care of dogs, give lessons in certain school subjects, mow the lawn, and work in a clothing store or a coffee shop. The possibilities are various, and the goal is to let them choose the job that suits them best and that they are ready to do.
- Don’t bail them out!
If the children make a mistake, it is of crucial importance that the children correct that mistake themselves. As parents, you can support them and give them advice, but you must not help them financially. If the children spend all the money unplanned, do not give them extra money. Everyone learns best from their mistakes, and so do children and they must bear responsibility for their actions.
Photo by Anastasiya Gepp
